Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Loss from Operations Before Provision for Income Taxes

Loss from operations before provision for income taxes was comprised of the following:

	FY 2022			FY 2021
	Year Ended			Year Ended
	December 31, 2022			January 1, 2022
United States	$	(7,544	)	$	(5,233	)
Foreign		62			48
Total	$	(7,482	)	$	(5,185	)

Provision for Income Taxes

The provision for income taxes includes:

	FY 2022			FY 2021
	Year Ended			Year Ended
	December 31, 2022			January 1, 2022
Current:
Federal	$	—		$	—
State		47			20
Foreign		18			18
		65			38
Deferred:
Federal		1			1
State		(1	)		1
		-			2
Provision for income taxes	$	65		$	40

Effective Tax Rate Differs from the Statutory Federal Income Tax Rate

Our effective tax rate differs from the statutory federal income tax rate as shown in the following schedule:

	FY 2022			FY 2021
	Year Ended			Year Ended
	December 31, 2022			January 1, 2022
Income tax provision at statutory rate		21.0	%		21.0	%
State income taxes, net of federal benefit		5.1	%		7.6	%
Permanent differences		(2.1	)%		17.1	%
Federal rate change impact		(1.1	)%		—
Research and development credits		1.5	%		2.3	%
Change in valuation allowance		(24.0	)%		(47.4	)%
Foreign rate differential		(0.1	)%		(0.2	)%
Other		(1.2	)%		(1.2	)%
Effective tax rate		(0.9	)%		(0.8	)%

Tax Effect of Temporary Differences and Carryforwards that Give Rise to Significant Portions of the Net Deferred Tax Assets

The tax effect of temporary differences and carryforwards that give rise to significant portions of the net deferred tax assets are presented below (in thousands):

	FY 2022			FY 2021
	Year Ended			Year Ended
	December 31, 2022			January 1, 2022
Deferred tax assets:
Net operating losses	$	11,264		$	13,751
Research and development credits		3,904			3,582
Accruals and reserves		2,505			2,637
Deferred revenue		2,640			82
Property and equipment		283			361
Intangible assets		344			268
Section 174 research and experimental expenditures capitalization		1,500			-
Stock compensation		717			574
Other tax credits		1			-
Total deferred tax asset		23,158			21,255
Less: Valuation allowance		(23,078	)		(21,280	)
Total deferred tax assets, net		80			(25	)
Deferred tax liabilities:
Goodwill		(104	)		-
Total deferred tax liabilities		(104	)		-
Net deferred tax liabilities	$	(24	)	$	(25	)

A Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	FY 2022			FY 2021
	Year Ended			Year Ended
	December 31, 2022			January 1, 2022
Balance at the beginning of the year	$	1,308		$	1,220
Additions based upon tax positions related to the current year		110			88
Reductions based upon tax positions related to the prior year		(50	)		-
Balance at the end of the year	$	1,368		$	1,308